Canaan Creative looses $5.6 million amid weakening demand for mining hardware. The bitcoin mining rig manufacturer has reported a net lose of a whopping $5.6 million in the first quarter of 2020 down from $9.5 million a year earlier.
The Chinese company has cut prices of its ASIC-based machines by over 50% in an effort to improve sales. However, that wasn’t enough to prevent the heavy loss. Demand slumped as the coronavirus pandemic, which disrupted the movement of goods worldwide, took its toll on the company.
Canaan’s earnings report on Friday reported that the firm sold 0.9 million terahash per second (TH/s) of Bitcoin hashpower, up from 0.7 million TH/s in the same period in 2019. This year’s terahash sales account for about 1% of the BTC network’s current total.
Canaan chief executive officer Zhang Nangeng shared that “The overall market situation since December last year until January had not been too good. So the unit price per TH/s was indeed lower. And the logistics in mainland China had basically stopped around the Chinese new year due to the Covid-19 pandemic. So even though bitcoin’s price was at a higher point in February and early March, the pandemic largely affected our sales.”